Correlation Between KB Financial and SSR
Can any of the company-specific risk be diversified away by investing in both KB Financial and SSR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KB Financial and SSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and SSR Inc, you can compare the effects of market volatilities on KB Financial and SSR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KB Financial with a short position of SSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and SSR.
Diversification Opportunities for KB Financial and SSR
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 105560 and SSR is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and SSR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Inc and KB Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KB Financial Group are associated (or correlated) with SSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Inc has no effect on the direction of KB Financial i.e., KB Financial and SSR go up and down completely randomly.
Pair Corralation between KB Financial and SSR
Assuming the 90 days trading horizon KB Financial Group is expected to generate 1.7 times more return on investment than SSR. However, KB Financial is 1.7 times more volatile than SSR Inc. It trades about 0.09 of its potential returns per unit of risk. SSR Inc is currently generating about -0.07 per unit of risk. If you would invest 7,587,384 in KB Financial Group on September 3, 2024 and sell it today you would earn a total of 2,032,616 from holding KB Financial Group or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. SSR Inc
Performance |
| Timeline |
| KB Financial Group |
| SSR Inc |
KB Financial and SSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and SSR
The main advantage of trading using opposite KB Financial and SSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, SSR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SSR will offset losses from the drop in SSR's long position.| KB Financial vs. Cuckoo Homesys Co | KB Financial vs. NICE Information Service | KB Financial vs. Hanjin Transportation Co | KB Financial vs. Lotte Data Communication |
| SSR vs. Iljin Materials Co | SSR vs. Ssangyong Materials Corp | SSR vs. Nam Hwa Construction | SSR vs. Lake Materials Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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